PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

Undeclared income

TaxAid is contacted by many people who are worried because they have not declared some or all of their income to HM Revenue and Customs. The reasons why this has happened vary greatly. An activity started for friends only, or as a hobby, can expand into a significant business. A person suffering from depression may be encouraged by family members to start a small business as therapeutic work, but no one has thought of the potential tax consequences. Many people ‘test the water’ with a small business intending to register when they start to make some money, but somehow never find the right time to make the transition. Others have not had the money to pay their tax and thought that it was best to ‘keep quiet’.

The result can be a great deal of anxiety – a desire to come into the system; but a fear of doing so. This guide will help you to understand how best to approach HMRC and what you should expect to happen during the process.